What are the main weaknesses of using demand-side policies, Microeconomics

Assignment Help:

What are the main weaknesses of using demand-side policies?

Trade-off issues

a) Growth and low unemployment often come with inflation

b) Government stimulatory policies might be come from deficit spending and thus enhanced debt

c) Growth may result in current account problems (HL; use MPM)

d) Growth and inflation, together with rising imports may lead to downward pressure on the exchange rate

Related Discussions:- What are the main weaknesses of using demand-side policies

Demographic profile, DEMOGRAPHIC PROFILE: A demographic profile of Ind...

DEMOGRAPHIC PROFILE: A demographic profile of India can be prepared out of the data collected by the office of the Registrar General of India who is the responsible authority

International economics., GIVE AND EXPLAIN IN DETAIL,ARGUMENTS GIVEN TO EXP...

GIVE AND EXPLAIN IN DETAIL,ARGUMENTS GIVEN TO EXPLAIN LEONTIEF''S EMPERICAL FINDINGS ON THE HECKSCHER-OHLIN MODEL OF TRADE.

Indirect utility functions, Indirect Utility Functions: Let qi denotes...

Indirect Utility Functions: Let qi denotes commodity i and pi is the price of that commodity. Let y denotes money income of the consumer. Suppose vi = pi/y. The budget constra

What is e-commerce, E-COMMERCE ? Electronic commerce or e-commerce refe...

E-COMMERCE ? Electronic commerce or e-commerce refers to a large range of online business actions for services and products. It in addition pertains to "any type of business

Describe price elasticity, Time is a significant determinant of price elast...

Time is a significant determinant of price elasticity. If a price changes, it might take consumers a certain amount of time to discover alternative lifestyles or commodities to ac

Utility, if sabela can afford 4 trousers and 4 pairs of shoes.she could als...

if sabela can afford 4 trousers and 4 pairs of shoes.she could also use her entire budget to buy 8 trousers and 2 pairs of shoes.if the price of a trouser is 500 birr,how much is s

Homework, If a person literally had “nothing else to do,” (a) What would b...

If a person literally had “nothing else to do,” (a) What would be the opportunity cost of doing this homework?

Criticism of opportunity cost, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Uses of balance of payments account, Uses of Balance of payments account: ...

Uses of Balance of payments account: It removes the uncertainty associated with the flexible exchange rate regime and brings stability. It also indirectly imposes some anti inf

Economics, Ask questiowhat are the importance of the branches of economics

Ask questiowhat are the importance of the branches of economics

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages